United Kingdom (UK) Travel Insurance Market Analysis and Forecast to 2025

COVID-19 has hit the UK travel insurance market extremely hard, with gross written premiums (GWP) declining 18.2% in 2020 as traveling was restricted for the vast majority of the year. The success of the UK’s COVID-19 vaccination program has allowed fully vaccinated residents to travel to certain countries with fewer restrictions from August 2021 than at the start of the year. A combination of consumers’ interest in traveling abroad for holidays or visiting family for the first time in a long time as well as the rising cost of travel insurance premiums will lead to considerable growth in 2021. We forecast GWP to rise by 14.0% to £582m in 2021, which will still be lower than the £624m recorded in pre-pandemic 2019.

This report provides in-depth analysis of the UK travel insurance market. It looks at current and historical market sizes and profitability, examining changes in premiums and claims. It analyzes the competitive landscape, providing examples of key travel insurance products. The report discusses travel trends and the impact of various sociopolitical and economic factors, including COVID-19 and Brexit. Forecasts up to 2025 are provided for GWP, and the report also discusses how the market and travel insurance products are likely to change over this period.

Scope

• UK travel insurance GWP is forecast to record a CAGR of 4.9% to reach £648.65m by 2025.
• Claims also decreased in 2020 as fewer people traveled. Claims declined by 34.2% to £250.0m. This is expected to increase significantly in 2021 as consumers look for more comprehensive policies, which means consumers will be covered for more potential risks.
• Munich Re was the largest travel insurer by GWP in 2020 with a 17.1% share of the market, down from 20.8% in 2019. U K Insurance underwrote the largest number of contracts, accounting for 14.7% of the market in 2020 - marginally up from 14.6% in 2019.
• The pandemic has seen an increase in staycations, which looks set to continue. While individuals can now travel abroad, it is not straightforward. This means insurers will need to reach out to people traveling within the UK and demonstrate that travel insurance can still be worthwhile.

Reasons to Buy

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• Learn about growth in all aspects of the market, what is driving it, and whether it is set to continue.